Interest income received by the co-operative bank from advance rent is eligible for a deduction under s 80P(2)(a)(i)

CIT Vs The Maratha Mandir Co-op. Bank Ltd. (Bombay High Court)- Interest income in the present case arose on account of giving advance rent to the landlord from whom premises were taken on rent for the purpose of carrying on banking business. Thus, the interest income in the present case is closely connected to the banking business carried on by the assessee. Thirdly, the Reserve Bank of India, controlling the banking business in India has issued guidelines on 18/6/1987 thereby permitting the co-o

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